Top picks for 2007

Here we go with my top picks for the year and the reasons for them

Cummins Inc (NYSE : CMI) - Maker of generators and engines, low p/e around 8, cheap compared to its peers like Caterpillar. This is a gem that is trading cheap, do not get turned off by the high stock price. Price $116.75

Fedex (NYSE : FDX) - See my previous post, its trading cheaper to UPS and a great company. Price $108.86

Conoco Phillips (NYSE : COP) - Cheapest of all the oil giants, has a p/e of 6, hated by the market because of all the acquisitions and belief that they paid too much for Burlington Resources. Price $63.83

Taiwan ETF (NYSE : EWT) - Cheapest of all Asian markets, an indirect play on China. Worldclass companies like Hon Hai and TSMC. Price $14.46

Omega Healthcare Inc (NYSE : OHI) - This is a REIT that specializes in owning and financing of elder care facilities. They had some accounting issues last year but seem to have come out of it bruised but in good shape. Price $17.53

Limited Brands Inc (NYSE : LTD) - With brands like Victoria Secret, Bath and Body Works and others this company has built a strong economic moat (Warren Buffet's term). Limited trades at a p/e of 15, gives a decent dividend of 2.2%. Price $28.62

Cheers for a great 2007 - more to follow.
(Disclosure : I own OHI and plan to own all of the above, probably average into all of these during the next few months)